effectiveness of monetary and fiscal policies in nigeria

Click the DOWNLOAD NOW button to get the complete project work instantly. Creative Commons Attribution 4.0 International, Taxation, revenue allocation and fiscal federalism in Nieria: Issues, challenges and policy options, Fiscal Federalism in Nigeria: A Contemporary Revew, Central Bank Independence and Transparency: Evolution and Effectiveness, Domestic Financial Policies under Fixed and under Floating Exchange Rates, Capital Mobility and Stabilization Policy Under Fixed and Flexible Exchange Rate, MONETARY POLICY FRAMEWORK IN AFRICA: THE NIGERIAN EXPERIENCE, Nigeria's Economic Reforms: Progress and Challenges, The Cyclical Behaviour of Fiscal Policy: Evidence from the OECD, Asymmetric Policy shocks and Real Output Fluctuations in Nigeria (1960-2004), Fiscal Policy within the New Consensus Macroeconomics Framework, Asymmetric Policy Shocks and Real Output Fluctuations in Nigeria (1960-2004), Optimal Monetary and Fiscal Policy with a Zero Bound on Nominal Interest Rates. Monetary Policy and its Effectiveness on Economic Development in Nigeria Author: Akinjare Victoria, A.A. Babajide, Isibor Areghan Akhanolu and Okafor tochukwu Subject: International Business Management Keywords: Monetary policy, growth, development, optiaml rate, foreign investment Created Date: 12/8/2016 10:18:13 AM Agu, S.U., (2015). The Ministry is headed by the Minis, 2015). this persistent inflationary increase in the country gave impetus for the launching of these two policies as a good weapon to check the negative tendencies of inflation. The error correction mechanism and co-integration technique were used to analyze the data and draw policy inferences. Ogege and Shiro (2012), however, investigated the dynamics of Nigeria’s monetary and fiscal policies, focusing specifically on their effects on the growth of Nigerian economy. Low Fees | No JAMB UTME. THE IMPACT OF FISCAL POLICY ON THE NIGERIA ECONOMY. 1.1 MONETARY POLICY FORMULATION . In order to achieve this objective, the paper is structured into five sections. Sovereign Wealth Fund Institute, (2015). Roger, S. (2010). Ideally, monetary policy should work hand-in-glove with the national government's fiscal policy. The world is still a closed economy, but its regions and countries are becoming increasingly open. This study investigated the impact of fiscal and monetary policy on Nigerian economic growth from 1981 to 2015, with the interest in exploring which of fiscal or monetary policy has been effective in propelling economic growth in Nigeria and how GDP growth responds to the monetary and fiscal policy … This contribution aims to consider this particular contention by focusing on fiscal policy. In between these two extreme views are the synthesists who advocate the middle path. CHAPTER FOUR: DATA ANALYSIS AND INTERPRETATION OF RESULT Central Bank of. This study employs the auto regressive distributed lag (ARDL) model to ascertain the relative effectiveness of monetary and fiscal policies in Nigeria using a quarterly time-series from 1981-2012. PROECT TOPIC: REVIEW OF MONETARY AND FISCAL POLICIES IN THE NIGERIA ECONOMY includes abstract and chapter one, complete project material available REVIEW OF MONETARY AND FISCAL POLICIES IN THE NIGERIA ECONOMY PROPOSAL Occasionally, the nation is faced with economic instability, this could be as a result of less or too much money in circulation, therefore the researcher … CHAPTER ONE 1.0 GENERAL INTRODUCTION 1.1 BACKGROUND OF STUDY Monetary policy is mainly concerned with interest rate management and control of money supply in the economy. 1.6 ORGANIZATION OF STUDY associated with the dependence of the country on the, Data Source: Central Bank of Nigeria Statistic, Figure 2:Nominal GDP Growth Rate and Fiscal. The work will cover the effectiveness policy in Nigeria economy in Nigeria for the period between 1970 – 2003. Available at http://eth, Revenue Mobilization, Allocation, and Fiscal Commissio. Monetary Policy Frameworks in Nigeria, namely the exchange rate targeting phase (19, British currency, while the direct monetary tar, the indirect monetary targeting, tools like the Open Market Opera, about 6.6% in 2012, as shown in Figure 5 below, Figure 4: Headline Inflation under Different Moneta, Figure 5: Real GDP Growth under Different Mone, respect to trade and other forms of cross-country flo, of GDP); portfolio investment (% of GDP); and income payments to forei, Source of Data: KOF Swiss Economic Institute (ww, developments such as fluctuations in international inte, monetary policy has improved since the introdu, policy has performed better under the market, maintain the adoption of the market-based mon. From our analysis, it discovered that monetary and fiscal policies both have significant positive impact income. ‘Fiscal Policy at a Glance’ explains fiscal policy and related ... effective leadership, mentorship and inspiration is instrumental in the production of this book. HURRY!!! References . The analysis is conducted using the policy rate, i.e. Taxation is one of the most important and easy sources of revenue to any government, as the government possesses inherent power to impose taxes and levies. the central bank rate (CBR) and the cash reserve ratio (CRR) with respect to the interest rate and bank lending channels, respectively. [8] Ali, S. Irum, S. & Ali, A. The Social Sciences, Medwell Journals, vol. Abuja, Nigeri, Staff Papers No 9), Washington D.C.: Internation, of Public Administration and Management Research, Study of African Economies (CSAE) Conference, Depart, Nigeria Sovereign Investment Authority, (2015), on the Monetary Policy Framework in Africa of Reserve Bank of South A, Thesis, University of Leeds, UK). 3.3 Monetary and fiscal policies in Nigeria: between 1994-2010. The empirical results showed that the level of aggregation also had implication of the asymmetric effects of fiscal and monetary policy shocks in Nigeria. 4. To achieve economic stability, Udude (2014) stated that there is a need to place priority on efficient monetary policy tools. => FOLLOW US ON INSTAGRAM | FACEBOOK & TWITTER FOR LATEST UPDATES, => CHAT WITH OUR REPRESENTATIVE RIGHT NOW, Tags: Economic Growth of Nigeria, Fiscal Policy, Fiscal Policy on the Economic Growth of Nigeria. 37 of 1998,No. Monetary and fiscal policies contain the standard tools for macroeconomic management. vincent.onodugo@unn.edu.ng Oluchukwu F. Anowor2 2Department of Economics, Godfrey Okoye University, Enugu, Nigeria. Over the years, there has been the problem of fiscal dominance which most often hampers the effective implementation of monetary policy, especially prior to … 3.4 The global financial crisis. effectiveness of fiscal and monetary policies on economic growth in Nigeria using annual data from 1970 to 2007. It is a country-specific, time series study that verifies whether there is difference in the effect of expansionary and contractionary policy shocks on real fluctuations in Nigeria. Sagepub.com. Overall, the socio-economic and political milieu, including the legal framework under which the Central Bank of Nigeria has operated, was found to be the critical factor that influenced the outcome of mone- tary policy. Total Federal Collected Revenue (Taxes) significantly explained economic growth in Nigeria. The paper presents key issues, trend and challenges of taxation and fiscal federalism in Nigeria. This paper addresses the topic of cyclicality in fiscal policy. On the other hand, the Keynesians hold the opposite view. The objective of the research is to provide evidence for the effectiveness of the fiscal policy on economic growth. We, I characterize optimal monetary and fiscal policy in a stochastic New Keynesian model when nominal interest rates may occasionally hit the zero lower bound. Fiscal policy is the means by which a government adjusts its level of spending to monitor and influence a nation’s econ-omy. IMPACT OF MONETARY AND FISCAL POLICIES ON THE RATE OF INFLATION IN NIGERIA SINCE 1986 CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY it is about 21 years ago today since the introduction of a deregulated economic system (ie allowing the market forces to determine the interest rate) in Nigeria ever since the inflation […] Monetary policy involves the management of money, the supply of money and interest rate. Following years of economic stagnation, Nigeria embarked on a comprehensive reform program during the second term of the Obasanjo administration. This paper reviews Nigeria's recent experience with economic reforms and outlines major policy measures that have been implemented. There is an ongoing debate about the inherent effectiveness of monetary policy and its fundamental limitations. 3.6 Policy recommendations. Before […] This includes the macroeconomic objectives (price stability, economic growth, reduction in poverty, the balance of payment equilibrium etc.) All rights reserved. Effectiveness of Fiscal Policy: Most of the studies on fiscal policy effectiveness paid more attention on Institute, 2015; http://www.swfinstitute.org). The main thrust of this study shall be on the impact of fiscal and monetary policy instruments on the economic growth of Nigeria. Based on the foregoing facts, therefore, the efficacy or effectiveness of any monetary or fiscal policy initiative directed at cushioning the effect of Covid-19 on the Nigerian economy MUST address the realities of our socio-economic life as a nation. The research covers a period of 1981 to 2015 and data was collected from CBN’s statistical bulletin. The Former President of Chartered Institute of Bankers of Nigeria (CIBN) and a lecturer of economics at Babcock University Professor Segun Ajibola said this during recent comments on the Nigerian economy. THE EFFECTIVENESS OF MONETARY POLICIES IN NIGERIA ON ECONOMIC GROWTH ... As with the third inflation, it coincided with a period of expansionary fiscal deficit and money supply growth. CHAPTER ONE. Fiscal Policy and Economic Growth in Nigeria: Emphasis on Various Components of Public Expenditure. Since the early 1970’s there have been four major episodes of high inflation in excess of 30 percent. Their result showed that the effect of monetary policy is much stronger than fiscal policy. and microeconomic influence on the efficiency of resources use. - ORDER YOURS HERE, Agricultural Development Drivers and Economic Growth of Nigeria, Osun State Civil Service Commission LGA Recruitment 2020/2021 and How to Apply, Factors That Promote Community Development in Anaocha Local Government Area of Anambra State, British American Tobacco Recruitment for Entry Level Technicians – December, 2016, Visa Liaison / Administration Officer Vacancy at Hobark International Limited, Apply Now for Graduate Jobs in a Reputable School in Arepo, Ogun State, Top 10 Best Medical Schools in Nigeria | 2020 Latest Update, Fiscal Policy on the Economic Growth of Nigeria, The Effect Of Delisting On The Performance Of The Nigerian Stock Exchange, Assessment of Nigeria Certificate in Education (Nce) Teachers Attainment Goals in Junior Secondary Schools in Northwest Geopolitical Zone of Nigeria, Augustine University 2nd Convocation Ceremony Programme of Events 2020, Kaduna COE Matriculation Ceremony / Orientation 2019/2020 New Students, FCE Eha-Amufu 26th Matriculation Ceremony Schedule 2019/2020 Session, Federal Poly Idah HND Screening Schedule & Fee 2020/2021 Session Update, KSU Academic Calendar 2nd Semester 2019/2020 Academic Session, UNIMAID Post UTME/DE 2020/2021 Screening Form, Eligibility and Deadline Update, UNIMAID Post UTME/DE Form 2020/2021 Screening Application Update, FUOYE JUPEB Form for 2020/2021 Academic Session Admission Update, FUOYE JUPEB Admission Form 2020/2021 Session Application Update, JSCOEG NCE & Pre-NCE Admission Form 2020/2021 Academic Session. Most modern central banks target the rate of inflation in a country as their primary metric for monetary policy - usually at a rate of 2-3% annual inflation. These two policies are used to achieve macroeconomic goals in a nation. However, the second group of ... model to determine the relative effectiveness of monetary and fiscal policy on economic This paper reviews key aspects of Nigeria’s fiscal and monetary policies with the aim of examining the performance of the policies. It is the demand side economic policy implemented by the government to achieve macroeconomic objectives like growth, consumption, liquidity and inflation. h. ResearchGate has not been able to resolve any citations for this publication. Call 09038456231. 5, No. This study examines the effect of anticipated and unanticipated monetary policy shocks on the effectiveness of monetary policy transmission mechanism in Nigeria by estimating a sticky-price dynamic stochastic general equilibrium (DSGE) model using Bayesian estimation approach. One issue that is critical to domestic resource mobilization and utilization is the issue of fiscal federalism. review and appraise recent and not so recent theoretical and empirical developments on the fiscal policy front. The International Journal of Applied Economics and Finance, real aggregate and sectoral output measures. Government leaders get re-elected for reducing taxes or increasing spending. The findings showed that fiscal policy significantly lead monetary policyinexplainingchangesinnominalincome. like advanced countries like New Zealand, openness and globalization at the optimum level. Despite the lofty place of fiscal policy in the management of the economy, the Nigerian economy is yet to come on the path of sound growth and development. The data were sourced from Central Bank of Nigeria, National Bureau of Statistics and World Development Index Ideally, monetary policy should work hand-in-glove with the national government's fiscal policy. A key feature of the 2007 Act distiguishing it from th, the policy implications of the New Consesus Macroeco, Switzerland also adopt some of the features of th. The constitutional provision that recognizes local governments’ power in this regard must give them full freedom to operate and this must be well guaranteed and adequately protected. This would go along way in assessing the extent to which the fiscal and monetary policies have impacted on the growth process of Nigeria using the major objectives of fiscal and monetary policies as yardstick. Nigeria is not enjoying price stability in the least. real aggregate and sectoral output measures. These factors and their attendants’ problems, implications and effects are examined within the purview of fiscal federalism in this paper in line with the provision of the 1999 Federal Republic of Nigeria’s constitution. 27 July 2020 | 4:28 am Experts have appraised the effectiveness of fiscal and monetary policies of the Ministry of Finance, Budget and Planning (MFBP), and the … We consider fiscal policy within the current 'new consensus' theoretical framework, which views fiscal policy as ineffective. What kind of revenue and expenditure policies should developing countries adopt to help realize this objective? Such factors include cross-, African Institute of Applied Economics Mon, Canadian Journal of Economics and Political Sc. This study reveals that for the Nigerian economy fiscal policy is more effective than monetary policy for getting the country out of economic depression. Data Source: Central Bank of Nigeria Statistical Bulletin. Inflation Targeting Turns 20. They suggested that there This study examines the effect of anticipated and unanticipated monetary policy shocks on the effectiveness of monetary policy transmission mechanism in Nigeria by estimating a sticky-price dynamic stochastic general equilibrium (DSGE) model using Bayesian estimation approach. Effectiveness of Monetary Policy 2. Modern Economics (19th edition). The Effectiveness of Fiscal Policy on the Economic Growth of Nigeria. Asymmetric effects of fiscal and monetary policy, which the Central Bank of Nigeria has been a thing of over... During the second quarter of 2017 that analytics can see signs of recovery view in! Keynesians hold the opposite view for fiscal stabilization policy eliminates to a large extent the welfare losses.... The studies on fiscal policy on the need for effective COORDINATION of monetary policy should work hand-in-glove the! 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